Paper Trading: Positional Trades on Options

[columbus]

The elements of EMOTIONS and MONEY MANAGEMENT are missing from
Paper Trades.However it is a good exercise, quite similar to NET PRACTICE
before a big MATCH.Another difference is ,here PLAYERS do practice but
you Practise to PLAY.

 

[simplebuthard]

The elements of EMOTIONS and MONEY MANAGEMENT are missing from
Paper Trades.However it is a good exercise, quite similar to NET PRACTICE
before a big MATCH.Another difference is ,here PLAYERS do practice but
you Practise to PLAY.

Yes, you are right about that. Let me do this at least for 3 months so that i can collect few ideas before going live next time. :thumb:

 

[simplebuthard]

Paper trade 2:

Bought 7900 CE @ 57 while Nifty spot touched 7767

Will hold this position for next week. Looking to book while Nifty spot reaches 7940-60 range.

Update: 500 qty So invested 500*57 = 28500. I will prefer to book anything above 50% profits that is target above 75.

Closing paper trade 2 :

Open @ 7997 - A 70 pts gap up from yesterday closing.

After first 2 minutes, as NS not crossing 8000 and holding 7990 level, I close my 7900 CE position @ 118.

500*118 =59000

30000 approximate profits.

Now my VIrtual capital becomes 253000.

 

[simplebuthard]

Paper trade 3:

Recent Gas pricing made a big green bar on GAIL daily charts yesterday and today firmly trading above high. In coming day there is good enough upmove I can expect. Today made 52 week high.

Buying 4000 qty GAIL OCT490CE @ 5.60 price which is 22400 amount risked on this trade. Will close in couple of days by watching the stock price movement.

This will be final paper trade on this expiry. Next trade will be taken on next expiry.

 

[simplebuthard]

Paper trade 3:

Recent Gas pricing made a big green bar on GAIL daily charts yesterday and today firmly trading above high. In coming day there is good enough upmove I can expect. Today made 52 week high.

Buying 4000 qty GAIL OCT490CE @ 5.60 price which is 22400 amount risked on this trade. Will close in couple of days by watching the stock price movement.

This will be final paper trade on this expiry. Next trade will be taken on next expiry.

Chart for the above paper trade:

 

[simplebuthard]

Paper trade 3:

Recent Gas pricing made a big green bar on GAIL daily charts yesterday and today firmly trading above high. In coming day there is good enough upmove I can expect. Today made 52 week high.

Buying 4000 qty GAIL OCT490CE @ 5.60 price which is 22400 amount risked on this trade. Will close in couple of days by watching the stock price movement.

This will be final paper trade on this expiry. Next trade will be taken on next expiry.

Paper 3 was not closed manually because of the illiquid problems in last couple days. So let it exercise it automatically.

Gail closed @ 510.60

I bought 490 CE. SO thats a whooping 20.60 profits. so say in rupees, 4000 qty * 20.60 = 82400 Rs, deducting STT of Rs.2555 and risked amount 22400 on this trade premium, from that profits comes around 57400 on this single trade alone.

Previous grown capital was 253000 (started with 200000). So adding this Gail trade profits, total capital becomes at end of the expiry 3,10,400.

I took just 3 trades and made 1,10,400 profits out of 2,00,000 and remember i never invested more than 40k in any single trade out of 3. So this is very good risk reward ratio.

hmm, EOD chart is below:

 

[simplebuthard]

So here goes my lessons learnt in the profited 3 trades in October expiry.

1. As because it was i took only 3 paper trades out of 10=15 trading days. Comparing to the real trades that i was making before starting this paper trade, this number 3 is very low and say half. If it was real trades, i would have taken 6 trades.

So my lesson learnt is, few trades are almost sure good trades and I know that even before taking entry or while taking entry. So other few trades would have been unsure trades, "whether I'm going to miss a great opportunity" trades and greedy trades.

Takeaway: when going live on real trades in near future, i should enter only the trades which i am sure about.

2. The entered trades are sure trades and maximum possiblity of getting handsome profits trades. Remembering this "surity" thing was easy while paper trades but when i was doing real trades, i was exiting with 25% to 50% profits out of the risked capital because of the fear.

Takeaway: Allow them to run until handsome profits , say at least until get doubled.

For some of you reading my above sentences, you may think, "so in short this comes like this, problem no.1 Greed, problem no.2 Fear" and "so why these paper trades and what if again doing real trades, the same problems come and exist again"

But in my end, i had built further confidence on myself and to swear myself of taking only 3-4 positional trades rather than 7-8 trades i were doing in a expiry period. So i feel better after doing paper trades, and so i am going to continue for another 2 months al least these paper trades before going real trades. :thumb:

 

[james bond007]

simplebuthard u r 1000% right this phase ...logo ke mentality ke uper depend karta he ki aap paper trade ko kis tarah handal karte ho ....jarur paper trading ke anubhav ka labh live trading me sure milega best of luck :thumb: :thumb: :thumb: aag me pair rakhne ki bajaye 10 baar soch lena chahiye

 

[bunti_k23]

Yes paper trading is gud for practising the method (part of analysis) but mm and emotional thing is hard to learn frm it.

 

[stock72]

below in red is best worded .:thumb::thumb:.where many particularly me got fooled by market many times .. today ..this moment market doing its seductive dance in-front of me to take short trading ..but the system iam following asking me wait for a confirm signal...

So here goes my lessons learnt in the profited 3 trades in October expiry.

1. As because it was i took only 3 paper trades out of 10=15 trading days. Comparing to the real trades that i was making before starting this paper trade, this number 3 is very low and say half. If it was real trades, i would have taken 6 trades.

So my lesson learnt is, few trades are almost sure good trades and I know that even before taking entry or while taking entry. So other few trades would have been unsure trades, "whether I'm going to miss a great opportunity" trades and greedy trades.

Takeaway: when going live on real trades in near future, i should enter only the trades which i am sure about.

2. The entered trades are sure trades and maximum possiblity of getting handsome profits trades. Remembering this "surity" thing was easy while paper trades but when i was doing real trades, i was exiting with 25% to 50% profits out of the risked capital because of the fear.

Takeaway: Allow them to run until handsome profits , say at least until get doubled.

For some of you reading my above sentences, you may think, "so in short this comes like this, problem no.1 Greed, problem no.2 Fear" and "so why these paper trades and what if again doing real trades, the same problems come and exist again"

But in my end, i had built further confidence on myself and to swear myself of taking only 3-4 positional trades rather than 7-8 trades i were doing in a expiry period. So i feel better after doing paper trades, and so i am going to continue for another 2 months al least these paper trades before going real trades. :thumb: